The central legal point established in the judgment is the interpretation of the conditions for availing exemption under the relevant notifications, particularly regarding the use of low sulphur heavy stock (LSHS) in a thermal power plant for generating electricity and its use in the process of manufacturing petroleum products within the refinery area.

ORDER

1. This order shall dispose of two sets of appeals. Civil Appeals Nos. 7450-51 of 2000 filed by the assessee, M/s Indian Oil Corporation Ltd. a against the final order passed by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (for short "the Tribunal") in Appeals Nos. E/4768 of 1991-C and E/6108 of 1992-C whereby the Tribunal accepted the appeals filed by the respondent Collector of Central Excise, Baroda and held that the assessee would not be entitled to avail of the benefit granted under Entry 34 of Exemption Notification No. 75/84-CE dated 1-3-1984 (as b amended) issued by the Central Government. Period for which exemption is sought in these appeals falls between 1-8-1989 to 31-5-1991.

2. Civil Appeals Nos. 9919-29 of 2003 have been filed by the Commissioner of Central Excise, Vadodara against the final order passed by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (for c short "the Tribunal") in Appeals Nos. EI254-57, 282-83, 320 and 2091 of 1998-C, E12752 of 2000-C, E1274 of 2000-C and E/410 of 2000-C wherein and whereby the Tribunal has granted the benefit of Notification No. 67/95 which was operative between 16-3-1995 to 31-7-1996, Notification No. 8/96 operative for the period 1-8-1996 to 1-3-1997 and Notification No. 4/97 dated 1-3-1997 which is still in operation. It may be mentioned that a Notifications Nos. 67/95, 8/96 and 4/97 in substance extend the same benefit which has been extended to the assessees under Notification No. 75/84.

Period for which exemption is sought in these appeals falls between January 1996 to September 1999.

3. M/s Indian Oil Corporation, hereinafter referred to as "the assessee" is engaged in the refining of crude petroleum which leads to the manufacture of e various petroleum products. It produces reduced crude oil (RCO) or low sulphur heavy stock (LSHS) which are captively consumed by the assessee in the thermal power plant located within the refinery area for generation of electricity which electricity in turn is largely used in the refinery for producing various petroleum products. The assessee claimed exemption for RCO/LSHS which had been captively consumed based on exemption notifications issued from time to time.

4. Show-cause notices were issued to the assessee for the period 1-8-1989 to 31-5-1991 calling upon it to show cause why the duty demand be not raised on LSHS and as to why their claim for exemption be not denied on the ground that clearance of LSHS to other associate agencies such as Gujarat Electricity Board, ONGC, State Bank of India, P&T Exchange and ~ Post Office on nil rate of duty under Notification No. 75/84 was illegal and not admissible. According to the Department, Condition 4 of the notification was not fulfilled since fuel captively consumed was for production of electrical energy not for sale but for their own consumption or for supply of their own undertaking for which there is no execution of duty on such fuel t used for generation of electricity.

5. The assessee on 24-4-1990 submitted its reply stating, inter alia, that LSHS used for generation of electricity in the thermal power station situated within the refinery is eligible for exemption in terms of Notification No.75/84 since the electricity is supplied to the various agencies on no-profit no-loss basis.

6. The Tribunal in the impugned order in Civil Appeals Nos. 7450-51 of 2000 denied the benefit by observing that the thermal power station of the assessee wherein LSHS was consumed for generation of electricity is not covered by the meaning of the word "refinery" as per the explanation.

Therefore, Entry 34 of the notification under which the exemption was claimed as an alternate argument was not attracted and consequently it was not entitled to any exemption in terms of Entry 34 of Notification No. 75/84.

7. In the order impugned in Civil Appeals Nos. 9919-29 of 2003, the Tribunal relied upon a decision of the Southern Bench of CEGAT in Hindustan Petroleum Corpn